There are several payroll updates we must share with you this month, most notably:
Directors Salary Increases
If you’re a Director of a Limited company you can now take a Director’s salary of £719 per month, up from £702, for each Director without incurring any national insurance.⠀
If we currently process a directors’ salary of £702 for you, we will automatically increase this to £719.
If you don’t wish for this to happen please get in touch with Michelle, our payroll Queen.
HMRC Employer Bulletin – EU Exit Edition
HMRC publishes the employer bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them.
This edition is particularly topical, as it addresses what employers need to be aware of should the UK leave the EU without a deal. ⠀
Are you aware that the National Minimum & Living Wage will increase on 1st April 2019?
National Minimum & Living Wage rates will increase on 1st April and employers need to make sure the new rates are implemented for all hours worked from that date.
The rates from 1 April 2019 are:
£8.21 per hour – 25 yrs old and over
£7.70 per hour – 21-24 yrs old
£6.15 per hour – 18-20 yrs old
£4.35 per hour – 16-17 yrs old
£3.90 for apprentices under 19 or 19 and over who are in the first year of apprenticeship
Rest assured that we will make changes to all employees within the criteria, but if you have any questions – please contact Michelle Butler and she will be able to help.
Changes to Payslips
This month there are important changes to the Employment Rights Act 1996 affecting payslip information:
From April 2019, Employers must include the following information on a payslip;
The total number of variable hours a worker has worked.
This is required where an employee’s pay rate varies according to the hours worked. This might be because they have worked overtime, the number of hours they work changes in each pay period, or the rate they get for working certain hours is different.
We therefore kindly request that when submitting your payroll to us you include the breakdown in hours and rates for each employee, together with the split for holiday hours also. For employees who receive an annual salary, there is no change (unless they work overtime hours, in which case, a breakdown would be required)
If you have any questions, please get in touch.
If you’re an employer, or indeed an employee, you might find these handy downloadable guides helpful;